Leidos Holdings, Inc. (LDOS - Free Report) posted second-quarter 2017 adjusted earnings of $1.04 per share, beating the Zacks Consensus Estimate of 77 cents by 35.1%. The reported number also increased 52.9% from the year-ago figure of 68 cents.
Leidos Holdings posted total revenue of $2,571 million in the quarter, which surpassed the Zacks Consensus Estimate of $2,557 million by 0.5%. The reported figure also improved 99.6% year over year.
At the end of the second quarter, the company’s backlog of signed business orders was $17.1 billion, of which $5 billion was funded. Total backlog at the end of first quarter was $16.9 billion, of which $4.9 billion was funded.
Total cost of revenues in the reported quarter surged 95.7% to $2,233 million. Operating income was $166 million compared with $75 million in the year-ago quarter.
Interest expenses were $36 million, up from $15 million in the year-ago quarter.
Defense Solutions: Net sales at the segment improved 58.3% to $1,243 million from the prior-year figure of $785 million. Also, operating income improved to $63 million from the year-ago tally of $60 million, with operating margin contracting 250 basis points (bps) to 5.1%.
Health: The segment recorded net sales of $454 million in the reported quarter, up 123.6%. While operating income increased 311.1% to $74 million, operating margin expanded 800 bps to 16.3%.
Civil: Net sales at the segment were $875 million, up 191.7%. While operating income increased 230% to $66 million, operating margin expanded 80 bps to 7.5%.
Cash and cash equivalents as of Jun 30 were $262 million compared with $376 million as of Dec 30, 2016. Net cash outflow from operating activity in the second quarter was $177 million, compared with $72 million a year ago.
For 2017, the company raised its earnings expectation in the range of $3.45 to $3.60 per share from $3.05 to $3.35, guided earlier.
Revenues are now expected to be in between $10.1 billion and $10.4 billion compared with prior guidance of $10.0 billion - $10.4 billion.
Adjusted earnings before interest, tax, depreciation and amortization margin is anticipated in the range of 9.8−10.2%, up from the prior range of 9.5−10.0%. However, the company reiterated its projection of cash flows provided by operating activities from continuing operations to be $475 million or more.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2017 earnings from continuing operations of $3.23 per share, beating the Zacks Consensus Estimate of $3.10 by 4.2%. The bottom line also surpassed the year-ago period’s figure by 10.2%.
Textron Inc. (TXT - Free Report) reported second-quarter 2017 adjusted earnings from continuing operations of 60 cents per share, beating the Zacks Consensus Estimate of 55 cents by 9.1%.
The Boeing Company (BA - Free Report) reported adjusted earnings of $2.55 per share for second-quarter 2017, beating the Zacks Consensus Estimate of $2.32 by 9.9%. In the year-ago quarter, the company had incurred a loss of 44 cents.
Leidos Holdings currently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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